JKX are a growth oil and gas company, principally based in the Ukraine, but also present in several other countries, and have recently presented some excellent results.




JKX corporate website : http://www.jkx.co.uk/index.cfm

Poltava Petroleum : http://www.ppc.net.ua/inf_en.html

Annual report 2005 : Click HERE

In a way you are right Andy, but that does necessarily mean that Mr Yushenko thinks he needs JKX ...... but then of course I am a cynic! ...... With all the uncertainty and, as you say, posturing, in the short term I would not be at all surprised to see JKX retracking back towards 350. This looks to be a covenient round number and chart support of some kind, or perhaps even as far back as 300, which is about where sp was about a month ago.

I shall certainly (well almost!) be looking to buy back into this share, but the level is as yet undetermined, as of course is the timing .... the most important element of all.

cynic,

Well as the majority of JKX shares are held by institutions, I would be very surprised indeed if your price predictions came true, as they don't react like private investors do, they take a longer view.

In addition, trackers would have just been adding due to the inclusion in the FTSE 350, so another bunch of safe hands.

I haven't read anything that would concern me enough to sell my JKX in the last few weeks, and the AGM is almost with us, a chance for the directors to explain how the business is doing.

it happens that i made a very handsome profit on my holding, and took the view that no one ever goes broke by taking one .... i remain a fan of this stock and will happily reinvest if/when the time feels right ..... it will be uncertainty (fear!) rather than actuality that will precipitate any short term weakness

For a midcap oil company JKX should have perhaps ten to 20 rigs in active operation on a various number of their prospects .l expected a far more productive past two years with more work in not only the Ukraine { black sea } but also the Russias ; and aquisition of more prospects in other regions { Azerberjan Turmenistan . . Profits in 03/04 only increased as a consequence of the massive hike in the oil price. JKX did not produce an extra ounce . 2004/5 was better due to receipts from one repaired well and a single half decent strike Suddenly they look expensive to me.. A singular project leaving them immersed in the Ukraine .Whenever will they expand activities ? ...l have held most of my holding from when it was 36p to 64p but have added @ 150 and 210 and 276p and always felt comfortable holding them . But i look at other junior expos and suddenly JKX although looking very strong fundementally are once you scratch between the surface a little thin and weak . l found myself selling half my holding to fund and increase holdings in AFR and EEL in which i see a lot more upside . But while i do agree with Cynics last mail i dont think JKX will fall out of the sky . Far from it . Or i wouldnt keep half Regards to all other JKX eees @ +J

lncidentally anyone who is interested in a solid proven business model within the oil industry whose management and prospects are second to none . Rather than me prattling on about it i advise you to cast an eye over AFR . A 10 bagger within a 2 years . l stake my reputation on at least a price tag of 350p ++ by this year end . @+ J

TFC,

I have seen their presentation at Oilbarrel, and they certainly impressed IMO.

With regards to JKX, I agree they have been somewhat slow in adding to their wells, but since December they have two rigs working on their prospects, so that's a 100% increase on last year!

I believe we are due some news soon, regarding the well that previously encountered a high gas pressure, and possibly one other, which hopefully will be positive.

It looks as though we mayhave a busy year with the other prospects in Turkey, Bulgaria, and maybe even the USA giving us news, and Italy production is due to start in 2007, permit permitting.

Once JKX hook up to the export pipe from the Ukraine, we should realise a decent increase in revenue on that portion of the gas that is exported.


Whilst I agree the current valuation looks a bit toppy, I remain a fan, drill news is due, and could come at any time, and that would make a difference, as would any export revenues from the Ukraine.

Evening gents

Doubt that they have the capacity?

Ukraine may use other suppiers?

Regards

Dr Square,

Interesting article, thanks.

Maybe a bit of posturing going on?

JKX's portfolio of oil wells are increasing...bravo!


JKX Oil & Gas tests 2 wells at Poltava
AFX

LONDON (AFX) - JKX Oil & Gas PLC said it has completed and tested 2 further wells in its ongoing drilling programme at Poltava, Ukraine, with both wells tied back to the company's production facility via new flowlines.

During testing, Well M154 flowed at a stabilised rate of 920 barrels of oil per day and 1 mln cubic feet of gas through a 33/64 inch choke, with a wellhead flowing pressure of 770 psi. Well M154 is a horizontal development well located on the southern flank of northern part of the Molchanovskoye Field.

Also in testing, Well I124 flowed at a stabilised rate of 1,530 bpd and 0.75 mln cu ft of gas through a 30/64 inch choke, with a wellhead flowing pressure of 1,075 psi. Well I124 is a vertical development well located on the southern flank of the Ignatovskoye Field.

hyleo98,

well the usual lack of interest to a very positive JKX announcement today!

At least you noticed!

An extra 2450 barrels of oil per day added to production is better than a poke in the eye, IMO!

At the conservative rate of $60 per barrel, this would give JKX some $53 million extra revenue, before depletions, each year.

And then there is the 1.75 mln cu ft of gas!

Now we need well R101 to come up with the goods, and we really will be rolling down the runway IMO.

Andy

Quite please trying to get some more.

Regards

Dr Square,

Mum's the word!

Andy, Dr Square, I'm way off thread, for which I apologise, but check out MOG - big RNS announcement upgrading resources. Could go ballistic.

DYOR :o)

ST

OOPS.... IS THIS A BUYING OPPORTUNITY OR WHAT....!

I am very sure it is a great buying opportunity...bought in just a moment ago

Afternoon

Have to admit I had some more this morning first thing.

Round two is about to start with America as umpire

Regards

From Cardinals recent reserve report. The price of gas is interesting hope it gets there.

Time Period Forecast Average Forecast Average Forecast Average
Gas Price/Mcf Oil Price/Bbl Cond Price/Bbl

2006 $2.60 $53.36 $59.67
2007 $2.67 $54.20 $60.70
2008 to 2020 $3.40 $54.45 $60.98
2021 to 2030 $4.52 $70.19 $78.61


Another bit from the report is that Ukraine has increased the tax on oil by 59% from January.

Regards

JKX Oil & Gas PLC
18 May 2006




JKX Oil and Gas plc

AGM STATEMENT

Speaking at the Annual General Meeting today, JKX Oil & Gas plc's Chairman, the
Rt. Hon. Lord Fraser of Carmyllie Q.C., said:

'I am pleased to be able to report that your Company continued to grow
significantly in 2005, with rising production generating substantial increases
in both revenues and profits. We have embarked on this current year with the
objective of again lifting production, and utilising our strong balance sheet
and cash flow to broaden our asset portfolio and increase our reserve base.

'Ukraine remains the Company's main area of production and investment. The
drilling programme is moving at an accelerated pace on our Poltava licences with
the addition of a second drilling rig from the turn of the year. We have
recently reported the positive results of the drilling and completion of two
further development wells on the Ignatovskoye and Molchanovskoye Fields
respectively; these have lifted current production rates above 12,000 boepd. The
larger of our two rigs has completed the deep, high pressure gas Well R101 on
the Rudenkovskoye Field, and is now returning to Molchanovskoye to drill the
next oil targeted development well. I anticipate that we will be in a position
to release initial indicative results in the early part of next month from the
extended test programme planned for Well R101. Our smaller rig has just
successfully completed a re-entry and sidetrack on Well I101 on the Ignatovskoye
Field, and testing is scheduled for next month. This rig is now moving to drill
our first exploration well in the Zaplavskoye license which lies to the south of
our production licences at Poltava. We are also out for tender for a large rig
to drill the Devonian section at 5,000m plus in the northern part of
Rudenkovskoye Field.

'The Company continues to seek to increase its licence portfolio in Ukraine and
welcomes the recent introduction of open licence auctions. I am hopeful that
future licence offerings will include both exploration and development acreage.

'Throughout 2005, the Company actively pursued new opportunities in and around
its core area of activity, the results of which include the addition of two new
exploration licences in Ukraine and recent farm-ins to projects in Bulgaria and
Turkey; work programmes are underway on all projects. The Company is continuing
to evaluate other potential opportunities in the region, including onshore
projects in the Russian Federation. I remain confident that the management team
will add meaningful assets to our portfolio in the current reporting period.

'Increase in reserves remains the strategic objective for this year, with
Ukraine continuing as our prime area of investment, expansion and development.
Despite the current delay in formation of a new government, your Board is of the
view that market economy forces are well entrenched in Ukraine and further
privatisation of the oil and gas sector can reasonably be expected in the medium
term.


Your Board continues to remain committed to delivering shareholder value. We
have recommended a doubling of the dividend for 2005, and I can confirm that the
Board will be reviewing the absolute dividend level to be paid in the
forthcoming period.

'Finally, I extend my appreciation and thanks to all shareholders of the Company
for their continued interest and support.'


ENDS



Press Enquiries

Sofia Rehman Cardew Group 020 7930 0777


This information is provided by RNS
The company news service from the London Stock Exchange

Got myself in a muddle need some help.

JKX have three possible ways to increase revenue.

1: Higher domestic gas prices. (June Gasprom negotiations)
2: Increased production ( AGM statement & current RNS statements)
3: selling outside of Ukraine ( tie in to gas pipeline AGM statement)

Have I missed anything????

Currently in January ukraine did a deal with Gasprom to supply gas at $95 per 1k double what was currently being payed. Share price doubled???? in reports at the time it was clear the intention was for it to be a sliding scale agreement over 5 years?????? So am I wrong in thinking that in June we may see a further increase????? and responding share price increase.

Production has increased since 05 and it seems that they have some in hand is this currently reflected in share price?????

With the current problems within the Ukraine can we really see JKX being allowed to export and what would be the tax on such exports???

I am not takeing the Michael on this I truly have lost the plot anyones views on the 3 issues above would be truly welcome.

Regards

Dr Square,

Here is my take on your three questions.

I have read rumblings about Gazprom increasing the prices, but i have also read that Ukranian indusrty is really suffering, so maybe they couldn't take another increase so soon? I am discounting an increase in the local domestic price for 2006.

Given the current average production, and the fact that some of the increase in last years's production did not really show in the figures for year end, will result in a decent increase for 2006 IMO.

Add to that, hopefully, we will see some positive results for the 2006 drilling campaign, R101 for example.

With regards to exports, JKX seem determined to commence exportation of it's gas to realise the international higher prices, and I am sure they will eventually prevail, as they must have a signed agreement to do so.

Just my thoughts.